GOVERNANCE BEST PRACTICES OF WORLD-CLASS GLOBAL BUSINESS SERVICES (GBS)ORGANIZATIONSJoel Roques, Managing Director Europe,...
Statement of Confidentiality and Usage RestrictionsThis document contains trade secrets and other information that is comp...
Contents   Part 1 – Governance           Introductions           Trends in Global Business Services (GBS)           The Im...
Contents           Introductions           Trends in Global Business           Services (GBS)           The Importance of ...
Speakers    Joel Roques                                                                                                   ...
The Hackett Group: intellectual capital and implementation  expertise – accelerating time to sustainable benefits  We are...
We know how the best do it,                                            where they do it, and the benefit of doing it.     ...
Contents           Introductions           Trends in Global Business           Services (GBS)           The Importance of ...
Trends in GlobalBusiness Services(GBS)                     India’s current position                      and outlook for ...
Today, approximately 4,500 captive and BPO centers existglobally                                                          ...
India has a captured a large part of the BPO market, butonly a small share of the captive ‘market’                        ...
Medium-term expect a decline in offshoring of jobs inFinance, IT and other key business services areas                    ...
GBS are moving from shared services models towardsGlobal Business Services Models                                         ...
Few GBS have entered the most advanced stage of GBSdevelopment                                                            ...
GBS form integrated global delivery networks, how shouldthese be governed?                                                ...
The Importance ofeffective GBSGovernance                     What is GBS Governance?                     What is the tan...
A commonmisconception                Governance is about                getting your service level                agreemen...
GBS Governance and GBS service management areintertwined but not the same                                                 ...
World-class GBS exceed expectations of business clientsto support enterprise agility 6 times more than peers              ...
A World-class GBSGovernance Model                     Key components of a                      World-class GBS           ...
Three building blocks of effective GBS Governance                                                                         ...
Global Business Services success is dependent on theguidance and support from the business                                ...
For both Peer and World-class GBS, the majority of GBSleaders report to the CFO                                           ...
Governance meetings need clear purpose and regularmeetings to be effective                             Governance body    ...
Effectiveness of different governance approaches forglobalized business service delivery                                  ...
Global Business Services success requires clear decisionauthority                                                         ...
World-class GBS have devolved more budget authority toGBS leaders than Peers                                              ...
Example - Governance Structure for a GBS                                                                                  ...
Challenges for a global governance structure                                Physical distance vs. proximity through an int...
QUESTIONS?
GOVERNANCE BEST PRACTICES OF WORLD-CLASS GLOBAL BUSINESS SERVICES (GBS)ORGANIZATIONSDirector – Practice leader, Global Bus...
Contents           GBS Evolution           The Importance of effective GBS           Service Management           A World-...
GBS service management is a prime enabler to advancefrom stage to stage 2 and beyond                                      ...
Service Management is a key enabler to move from afunction-centric to a value-centric GBS model                           ...
Does GBS Service Management matter?                       Q: How important is GBS Service Management in enabling your GBS ...
The Importance ofeffective GBS ServiceManagement                         What is effective GBS                          S...
A commonmisconception                Service Management is                about meeting your                service level ...
Quality of service delivery evolves through five phases inthe service management framework                                ...
Each phase of the lifecycle contains several processesdetailing these capabilities further                                ...
World-class GBS concur, Service Management is key todeliver World-class performance                                       ...
World-class GBS deliver higher levels of customer serviceand productivity gains compared to peer                          ...
A World-class GBSService ManagementFramework                      Key components of a                       World-class G...
Managing supply & demand successfully is pivotal for aWorld-class GBS                                                     ...
Service Catalogue Management connects Supply andDemand Management                                                         ...
Through demand planning the GBS can understand, planand influence customer demand…                                        ...
Getting it wrong, a GBS is either resource constrained orover-staffed                                                     ...
Top Performers are significantly better at forecastingservice demand than Peers                                           ...
GBS Financial management aims to align company andGBS objectives                                                          ...
Top Performers have implemented positions which supportexecution of key GBS service management capabilities               ...
GBS Service Management capability maturity levels,increasing capabilities lead to outperformance                          ...
Gic conclave 2012_joel_roques_hackett
Gic conclave 2012_joel_roques_hackett
Gic conclave 2012_joel_roques_hackett
Gic conclave 2012_joel_roques_hackett
Gic conclave 2012_joel_roques_hackett
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Gic conclave 2012_joel_roques_hackett

  1. 1. GOVERNANCE BEST PRACTICES OF WORLD-CLASS GLOBAL BUSINESS SERVICES (GBS)ORGANIZATIONSJoel Roques, Managing Director Europe, Middle-East & Africa and Asia - Advisory ServicesNew Delhi, GIC Conclave March - 20th-21st March, 2012
  2. 2. Statement of Confidentiality and Usage RestrictionsThis document contains trade secrets and other information that is company sensitive, proprietary, and confidential, thedisclosure of which would provide a competitive advantage to others. As a result, the reproduction, copying, orredistribution of this document or the contents contained herein, in whole or in part, for any purpose is strictly prohibitedwithout the prior written consent of The Hackett Group.Copyright © 2012 The Hackett Group, Inc. All rights reserved. World-Class Defined and Enabled.
  3. 3. Contents Part 1 – Governance Introductions Trends in Global Business Services (GBS) The Importance of effective GBS Governance A World-class GBS Governance Model Part 2 – Service Management GBS Evolution The Importance of effective GBS Service Management A World-class GBS Service Management Model
  4. 4. Contents Introductions Trends in Global Business Services (GBS) The Importance of effective GBS Governance A World-class GBS Governance Model
  5. 5. Speakers Joel Roques Martijn Geerling Managing Director Europe, Middle-East & Director − Practice Leader Global Business Africa and Asia − Advisory Services Services (GBS) Advisory Services, Europe, Middle-East & Africa and Asia© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 5
  6. 6. The Hackett Group: intellectual capital and implementation expertise – accelerating time to sustainable benefits  We are the global leader in operations improvement strategies, proven best practices-based implementation, and SG&A agility  We address both efficiency and effectiveness Hackett Value Grid™ improvements to enable strategic business objectives  Our insights are fact based, from over 5,000 benchmark studies and consulting engagements  Our Best Practices Intelligence Center™ is a significant differentiator and enabler. It contains: – 20,000+ performance metrics updated annually – 1,500+ best practices across 95 business processes – 1,000+ best practice-based process maps, requirements and configuration guides – 1,000+ case studies, implementation examples and research  We deliver results through a global team of senior practitioners using a consistent methodology and best practice-based toolset Hackett defines and enables sustainable World-Class performance© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 6
  7. 7. We know how the best do it, where they do it, and the benefit of doing it. 97% 80% 88% of the Dow Jones of the of the Dow Jones Industrials Fortune 100 Global Titans© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 7
  8. 8. Contents Introductions Trends in Global Business Services (GBS) The Importance of effective GBS Governance A World-class GBS Governance Model
  9. 9. Trends in GlobalBusiness Services(GBS)  India’s current position and outlook for the domestic ‘market’  The global trends
  10. 10. Today, approximately 4,500 captive and BPO centers existglobally Global distribution of captive and BPO centers East Europe Northern Europe Western Europe North America China Southeast Asia Africa India Middle- & South America Oceania >1,000 500-1,000 400-500 300-400 200-300 100-200 <100 Captive BPOSource: The Hackett Group, 2012© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 10
  11. 11. India has a captured a large part of the BPO market, butonly a small share of the captive ‘market’ Global distribution of captive and BPO centers – India‟s „share‟ BPO centers Captive centers 18% 5% 82% 95% Global India Global IndiaSource: The Hackett Group, 2012© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 11
  12. 12. Medium-term expect a decline in offshoring of jobs inFinance, IT and other key business services areas Productivity, growth and offshorable business services jobs (2011-2016) 0.2 Million Offshored 0.2 0.3 0.4 0.5 0.6 1.6 Million 0.7 0.9 1.0 productivity gap 1.2 1.4 1.5 1.7 4.7 4.6 1.8 2.0 2.1 2.3 2.3 Million 4.4 4.2 4.0 3.8 3.5 Offshored 8.2 Million 3.2 North America, 2.6 2.3 2.1 1.8 Europe 1.6 1.4 1.2 1.0 Headquartered Business 4.5 Million North Services Jobs America, Europe Headquartered 3.5 3.4 3.4 3.5 3.5 3.6 3.6 3.6 3.4 3.4 3.3 3.3 3.4 3.4 3.4 3.5 Business Services Jobs Non Offshorable Remaining Offshorable Remaining OffshoredSource: IMF World- Economic Outlook data, The Hackett Group proprietary data and publicly available company data, 2012© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 12
  13. 13. GBS are moving from shared services models towardsGlobal Business Services Models The three stages of Global Business Services evolution Maturity Stage Service Oriented Standalone Entity Value-centric 3 Service Placement Agility Service Management Centric Non-Traditional Knowledge Centers of Excellence Innovation Strategic Business Enablement Commercial Performance Profile Unit Cost Reduction + Service Value + Business Value Focus Stage Multiple Functions inside GBS Org 2 Service Management Implementation Enterprise Standards Operating Performance Technology Improvement Process/ Service Knowledge Centers of Excellence Excellence centric BPO & Managed Services Outsourcing Unit Cost Reduction + Service Value Focus Stage Functionally Focused & Owned Platform Transactional Standardization Function- 1 Regional Shared Services Consolidation Transactional Automation Unit Cost Reduction Focus Complexity Reduction centric Shared Services Global Business Services© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 13
  14. 14. Few GBS have entered the most advanced stage of GBSdevelopment In good company? Maturity Stage Value-centric 3 Strategic Business Enablement 6% Stage Process- 2 Operational Excellence 37% centric Stage Function- 1 Complexity Reduction 57% centric Shared Services Global Business Services© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 14
  15. 15. GBS form integrated global delivery networks, how shouldthese be governed? Company A - Global service delivery network Geographical scope Geographical scope Captive Center location BPO Center location© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 15
  16. 16. The Importance ofeffective GBSGovernance  What is GBS Governance?  What is the tangible effect of effective GBS Governance?
  17. 17. A commonmisconception Governance is about getting your service level agreements, key performance indicators right…
  18. 18. GBS Governance and GBS service management areintertwined but not the same  Provide consistent management guidance  Set cohesive policies and procedures GBS Governance  Assign effective decision-rights  Organizational capabilities enabling a GBS GBS to design, implement and Service Management optimize a service  Services delivered to GBS GBS customers, based on good Service provisioning governance and a well-defined service management model© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 18
  19. 19. World-class GBS exceed expectations of business clientsto support enterprise agility 6 times more than peers Strategic alignment – level of achievement 6X 14% Agility 83% The likelihood World-class GBS 11% exceed Cost reduction 75% expectations to contribute to enterprise Agility Improved service 14% delivery 67% Peer World-class (% of respondent answering ‘exceeded expectations’) Agility - Ability to respond to changes in the economic conditions and/or business strategy. An organization should be able to rapidly reduce its overall support function cost structure to match a 10%-35% revenue reduction within a 6-24 month time frame, while maintaining acceptable service levelsSource: The Hackett Group, 2012© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 19
  20. 20. A World-class GBSGovernance Model  Key components of a World-class GBS Governance Model  Challenges for a global governance structure
  21. 21. Three building blocks of effective GBS Governance  Who does the GBS leader report to? Roles,  What other roles, responsibilities and committees Responsibilities & are required to govern the relationship between Committees GBS and clients?  With what frequency should various governing bodies meet?  Who decides on: − Budget allocations Decision Rights − Service scope changes − Service Pricing  Which policies and procedures are required to manage a GBS? Policies & Procedures© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 21
  22. 22. Global Business Services success is dependent on theguidance and support from the business Strategic  Executive sponsorship Executive G&A  Strategic focus Governance Board  Facilitates organizational buy-in  GBS budget approval  Change agent and partner Customer Advisory  Sponsors improvement initiatives across the BU‟s Council Issue Escalation  Assess & resolve cross organizational issues  Builds partnerships across company  Manages activities via SLAs GBS Leadership Team  Accountable for delivery of: financial, process, customer, human capital & organizational targets  Aligns processes with Bus & GBS goals  Determines how to fulfil customer service requirements Global Process Owners  Provides oversight to end-to-end processes  Supports transformation efforts  Implement process improvement across the company End-to-End Process  Supports dispute resolution process by identifying root Control Councils causes of issues  Provides feedback to the Customer Advisory Council Operational© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 22
  23. 23. For both Peer and World-class GBS, the majority of GBSleaders report to the CFO GBS leader‟s reporting relationship GBS Executive GBS Executive leader leader Reporting to CFO 43% 42% Not reporting to parent CXO (HR, IT, Proc.) 9% 15% 17% 16% 2X More World-class GBS operate semi- CAO, COO 6% 16% commercial models than Peers CEO 9% 8% Business leader 19% 0% Peer World-classSource: The Hackett Group, 2012© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 23
  24. 24. Governance meetings need clear purpose and regularmeetings to be effective Governance body Meeting Agenda Frequency  GBS Strategy and client relations Governance  Budget and investments Bi-annually Board  Demand management  Issues management  Operations review Customer  SLA performance Quarterly Council  Issue management  Ongoing operations review – trending information – customer satisfaction GBS Leadership survey Monthly – projects and innovation  Issue management© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 24
  25. 25. Effectiveness of different governance approaches forglobalized business service delivery Percentage of companies indicating the approach is “moderately” or “highly” effective 70% Governance board 50% 66% End-to-end process owners 58% 28% Customer council 29% Processes provided through captive Processes provided through BPOSource: The Hackett Group, 2012© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 25
  26. 26. Global Business Services success requires clear decisionauthority Example RACI – decision matrix Decision Authority GBS Operating Decision End-to-End Customer Executive G&A Process GBS Leadership Advisory Governance Control Team Council Board Councils Annual operating budget C R C A Annual capital budget C R C A Required capital expenditure (ex. I R C A technology Significant project commitment I R C A SLA performance levels I R C A Process changes across Bus I R C A Service pricing levels I R C A Fundamental changes in GBS scope - R C A Additional headcount (within budget) - R C A Dispute resolutions (with BU / PG / Corp) - R C A R – Responsible A – Accountable C – Consulted I - Informed© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 26
  27. 27. World-class GBS have devolved more budget authority toGBS leaders than Peers Decision rights – operational and capital budget allocation GBS leader Superior of GBS Leader Board Governance Council Customer Other Decision responsibility Allocate operational 46% 33% 10% 3% 7% 1/2 budget Of World-class GBS 33% have enabled GBS 50% 17% 0% 0% leaders with operational budget 13% authority 43% 32% 12% 0% Allocate capital budget 33% 42% 25% 0% 0% 2/5 Of World-class GBS have enabled GBS leaders with capital Peer World-class budget authority© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 27
  28. 28. Example - Governance Structure for a GBS Responsibilities: Setting SSO strategy and scope 1 Governance Board Approve operational and capital budget Responsibilities: Finance HR IT • Manage budget and PROC. GBS Head … CFO CHRO CIO scope of SSO CPO • Maintain Master SLA 2 Global Business Services (GBS) Business Performance Responsibilities: Design and implement Global E2E 3 SSC EPM CoE End-to-End process Process BPO (ACS) (CESPs) (Planning) standards and Owner improvements Responsibilities: Project Deliver according to Service Team Agreement Contractual Functional Product partners by Zones Customers signed Service Groups (HR) Agreement 4 Responsibilities: Customer Council Monitor GBS performance Issue resolution Negotiate Service Agreement© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 28
  29. 29. Challenges for a global governance structure Physical distance vs. proximity through an integrated center network Cultural distance vs. ‘one company’ philosophy Offshore transaction center vs. globally leveraged model© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 29
  30. 30. QUESTIONS?
  31. 31. GOVERNANCE BEST PRACTICES OF WORLD-CLASS GLOBAL BUSINESS SERVICES (GBS)ORGANIZATIONSDirector – Practice leader, Global Business Services (GBS) program,Europe, Middle-East (EMEA) and AsiaNew Delhi, GIC Conclave March - 20th-21st March, 2012
  32. 32. Contents GBS Evolution The Importance of effective GBS Service Management A World-class GBS Service Management Model
  33. 33. GBS service management is a prime enabler to advancefrom stage to stage 2 and beyond  Provide consistent management guidance  Set cohesive policies and procedures GBS Governance  Assign effective decision-rights  Organizational capabilities enabling a GBS GBS to design, implement and Service Management optimize a service  Services delivered to GBS GBS customers, based on good Service provisioning governance and a well-defined service management model© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 34
  34. 34. Service Management is a key enabler to move from afunction-centric to a value-centric GBS model Maturity Stage Strategic Value-centric 3 Service Oriented Independent Platform Service Catalog Centric Business Enablement Stage Process/Service- 2 Service Management Integration Operating Excellence centric Stage Rudimentary Function- 1 Service Management Complexity Complexity Reduction Reduction centric Shared Services Global Business Services© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 35
  35. 35. Does GBS Service Management matter? Q: How important is GBS Service Management in enabling your GBS to positively impact overall company performance? Top Performer Peer 33% 67% 34% 66% of Top of Peers performers think its VS think its critical criticalSource: The Hackett Group, 2011© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 36
  36. 36. The Importance ofeffective GBS ServiceManagement  What is effective GBS Service Management?  What is the tangible effect of effective GBS Service Management?
  37. 37. A commonmisconception Service Management is about meeting your service level agreements, and key performance indicators…
  38. 38. Quality of service delivery evolves through five phases inthe service management framework GBS Service Management lifecycle Lifecycle Phase  Capability to identify a services portfolio that meets Service internal customer expectations demand in a cost effective Strategy manner  Capability to design and deliver services that meet Service internal customer expectations demand in a cost effective Design manner  Capability to transition a service from business unit to Service GBS causing minimal business disruption Transition  Capability to manage customer interaction and GBS Service support functions to deliver services with consistent Operation quality Continual  Capability to continuously improve service quality and Service operational effectiveness Improvement© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 39
  39. 39. Each phase of the lifecycle contains several processesdetailing these capabilities further GBS Service Management framework Lifecycle Phase Process Service Service Demand Financial portfolio Strategy management management management Service Service Supply Supplier catalogue Design management management management Service Service Change migration Transition management management Contact Service Service Infrastructure center continuity Operation management management management Continual Quality Knowledge Service Improvement management Improvement© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 40
  40. 40. World-class GBS concur, Service Management is key todeliver World-class performance Do you think it Does it actually matters? matter? of Top performers think Top performers realize GBS Service management twice the level of service 67% critical to the success of their GBS 2x quality improvements year-on-year compared to peers What matters Can you achieve most? top performance? The score of Top The percentage of GBS performers (scale 0-4) on that participated in the 3.8 Financial Management capability; which equates to Leading capabilities in 17% study demonstrating first quartile capabilities in GBS Service management this area of competence© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 41
  41. 41. World-class GBS deliver higher levels of customer serviceand productivity gains compared to peer Customer service and productivity improvements over 10% Customer service Productivity improvements improvements achieved achieved against baseline against baseline (past 12 (past 12 months) months) 4% 7% 3% 4% 11% 7% 17% 14% 19% 29% 59% 43% 44% 70% 63% 58% 26% 38% 30% 2% 11% 2% Peer Top Performer Peer Top Performer Deterioration No change 1% - 10% 11% - 20% 21% - 40% 41% - 60% >60%Source: The Hackett Group, 2012© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 42
  42. 42. A World-class GBSService ManagementFramework  Key components of a World-class GBS Service Management Framework  Challenges for a global Service Management model
  43. 43. Managing supply & demand successfully is pivotal for aWorld-class GBS Global Process Owners / BUs / Functions BUs BUs Func. Func. Business Relationship Managers Demand Call / Self Service / Email / Chat GBS Service Management Taxonomy  Service Strategy  Service Operation  Service Design  Continual Service Improvement  Service Transition Supply Transactions Projects Consulting Experts Assets Legal GBS Infrastructure© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 44
  44. 44. Service Catalogue Management connects Supply andDemand Management A customer perceives the service not the process… Service Demand Supply Catalogue Management Management Management Customer Service A Process 1 1 Service B Process 2 Customer 2 Service C Process 3 Customer 3© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 45
  45. 45. Through demand planning the GBS can understand, planand influence customer demand… Translate Determine client Develop capacity demand to demand plan services portfolio Price Supply Customer GBS Demand Quantity Manage plan-actual Develop service Develop service deviations pricing delivery plan© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 46
  46. 46. Getting it wrong, a GBS is either resource constrained orover-staffed Translate Determine client Develop capacity demand to demand plan services portfolio Price Demand > Supply Demand < Supply Supply Resource overstaffed constrained Customer GBS Demand Quantity Manage plan-actual Develop service Develop service deviations pricing delivery plan© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 47
  47. 47. Top Performers are significantly better at forecastingservice demand than Peers Level of accuracy in forecasting service demand 22% 42% 11% 4% 2% 9% 33% 9% 22% 2.6x 33% +/- 5% 13% +/- 10% +/- 15% Peer +/- 20% Top Peformer +/- 25% More than +/- 25% We do not measure this varianceSource: The Hackett Group, 2012© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 48
  48. 48. GBS Financial management aims to align company andGBS objectives 1 Annual GBS plan & budget 5 2 Perfor- mance Demand Measure planning ment 4 3 Demand & Financial Forecasting© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 49
  49. 49. Top Performers have implemented positions which supportexecution of key GBS service management capabilities Q: Which positions have you implemented? GBS Financial Manager 66% 100% GBS Business Relationship 30% Manager 78% GBS IT Manager 36% 78% GBS HR Manager 60% 67% GBS Strategy Manager 42% 67% GBS Service Manager 40% 56% GBS Sourcing Manager 23% 22% Peer Top Performer© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 50
  50. 50. GBS Service Management capability maturity levels,increasing capabilities lead to outperformance Capability Maturity Levels explained Setting new boundaries of excellence Pushing the outer Leading boundaries of effectiveness Exceeding Peer/ industry Performance Increasing focus on Exceeding value Delivered Performing at Peer/ industry Levels Achieving Significantly lagging in performance Lagging© 2012 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. NASSCOM GIC Conclave | 51
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